9630, 9357 ARE IMMEDIATE SUPPORTS; 10160, 10440 HURDLES

9630, 9357 ARE IMMEDIATE SUPPORTS; 10160, 10440 HURDLES

WORLD MARKETS

US indices soared 9.3% in their biggest rally since 2008, recouping most of the losses suffered in the previous session on the hopes of bigger fiscal stimulus from the U.S. government and others around the world.

House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. Also, the Federal Reserve said it will start buying Treasurys across all durations, starting with 30-year bonds.

President Donald Trump said 50,000 new coronavirus tests will be available next week

WTI crude rose $1.61, or 5.1%, to $33.13 per barrel while Brent crude climbed $1.71, or 5.1%, to $34.93 after President Donald Trump said the Department of Energy would purchase crude for the nation’s strategic petroleum reserve (SPR).

Main European markets rose 0.8%-2.5%.

For the week, US indices ended with cuts of 8.2%-10.4%. European markets plunged 17%-20%, suffering their worst week ever, reacting to additional news of US President Donald Trump’s decision to impose restrictions on travel to the U.S. from Europe, and the European Central Bank’s decision not to cut interest rates. Asian markets saw cuts of 5%-16%.  WTI crude fell 21% to $33 in its largest weekly decline since the financial crisis. Safe haven gold too fell 6% to $1576 an ounce. US 10-year treasury yield rebounded to 0.98% as against 0.77% at the end of previous week. Dollar index rose 2.7% to 98.69.

AT HOME

After hitting 10% lower circuit at the open, benchmark indices saw a mammoth rebound of 16% from the bottom of the day to end higher by nearly 4%. Sesnex settled at 34103, up 1325 points while Nifty added 365 points to finish at 9955. BSE mid-cap and small-cap indices gained 2.1% and 1.3% respectively. All the BSE sectoral indices ended in green with Telecom and Metal indices leading the tally, up 6.4% and 5.8% respectively.

FIIs net sold stocks worth Rs 6028 cr but net bought index futures and stock futures worth Rs 2498 cr and 2101 cr respectively. DIIs were net buyers to the tune of Rs 5868 cr.

Rupee appreciated 51 paise to end at 73.74/$.

For the week, Sensex and Nifty ended with cuts of 9.2% and 9.5% respectively, the largest cut since October2008.

OUTLOOK

U.S. Federal Reserve slashed its benchmark interest rate to zero and launched a massive $700 bn quantitative easing program in an emergency move on Sunday.

US Stock market futures are “limit down” levels of 5% lower. Nikkei and Shanghai are little changed while Hang Seng is down nearly 3%. SGX Nifty is suggesting about 300 points lower start for our market.

In Friday's report we had said that 8970, followed by 8675, the 61.8% and 67% retracement levels of the entire 6825-12430 upmove, would be support levels to eye.

Nifty, after touching a low of 8555, saw a mammoth rebound to end at 9955 and is set to open below 9700 today.

9630, 9357 and 9085, the 33%, 50% and 67% retracement levels of Friday's 8555-10160 upmove, are the support levels to eye.

10160, the top made on Friday, would work as immediate hurdle, upon crossover of which, 10440 would be the next resistance.